. /.   WORLD TRADE  
ORGANIZATION  G/SCM/Q2/QAT/2 
13 April 2007 
 (07-1500) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
SUBSIDIES 
 
Replies to Questions Posed by the UNITED STATES1 
Regarding the New and Full Notification of QATAR2 
 
 
 The following communication, dated 10 April 2007,  is being circulated at the request of the 
Delegation of Qatar.  
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Question 1 
 
Please explain why this program has hot been notified under Article 25 of the Subsidies 
Agreement.  If the program is notifiable, please provide all relevant information as stipulated 
under Article 25.   
Reply
 
 
The State of Qatar welcome the interest of the United States regarding the obligations of 
Qatar in fulfilling its obligations under the Agre ement on Subsidies and Countervailing Measures.   
Qatar confirms, that, as notif ied in 1999 and now in 2006, "i n accordance with Article 25 of 
the Agreement on Subsidies and Countervailing M easures and Article XVI:1 of the GATT 1994, it 
does not grant or maintain within its territory any subsidy within the meani ng of Article 1:1 of the 
Agreement, which is specific within the meaning of Article 2 of the Agreement..." (emphasis added).   
Further, and strictly in accordance with Article 25, it does not grant or maintain any subsidies 
inconsistent with its obligations, to "directly or indirectly to increase exports from or reduce imports 
into its territory within the mean ing of Article XVI:1 of GATT 1994". 
There is no single specific "program" as indicated  in the question by the United States.  None 
is specific to the WTO SCM, but is a series of di screte measures that fall within the disciplines of 
other GATT Articles and WTO Agreements.  In ge neral, they are incentives, which have been 
reviewed in Qatar’s Trade Policy Review in 2005.  In this connection, Qata r draws attention to the 
WTO Secretariat TPR Report (WT/TPR/S/144, 24 Ja nuary 2005, page ix, paras.13 and 14, pages 32-
33 para.69), which inter alia , states that the various incentives ar e given to both national and foreign 
entities, on a non-discriminatory basis, and with th e explicit purpose of encouraging investment and 
promoting the country’s overall development.   
                                                      
1 G/SCM/Q2/QAT/1.   
2 G/SCM/N/123/QAT.   G/SCM/Q2/QAT/2 
Page 2  
 
  The Secretariat Report further States that the g overnment does not levy duties or taxes on its 
exports (paragraph 61), nor any official counter tr ade or offsetting agreements designed to influence 
the quantity or value of goods and ser vices imported by Qatar (paragraph 58).   
Qatar’s notification conforms to the requireme nts of the WTO SCM Agreement, specifically 
Article 25.  Moreover, "any determination or specifi city under the provisions of this Article shall be 
clearly substantiated on the basis of positive eviden ce", as required by Article 2.4 of the Agreement.  
Question 2 
 
With regard to the privilege mentioned ab ove for locally-produced  items, could you 
please explain further the type of assistance provided under this section of the program?  For 
example, are these tax rebates on the purchase of locally-produced items? 
Reply
 
 
Please see the reply to Question 1.  In furthe r elaboration, the incentives given to joint 
ventures in which Qatar is the majority or im portant shareholder are designed to promote the 
country’s economic development.  There incentives are applied on a non-discriminatory basis and are 
not subsidies within the meaning of the SCM Agre ement.  There joint ventures are not required to 
source locally-produced goods instead of imported goods. 
Question 3 
 It appears that several of the above-ment ioned incentives may be contingent upon 
exportation or the use of domestic over impo rted goods.  Please explain how these incentives 
conform with Qatar’s obligation not to provide proh ibited subsidies, as provided Article 3 of the 
Subsidies Agreements? 
Reply
 
 
Qatar’s policy statement to the WTO Trad e Policy Review Body (WT/TPR/G/144 24 
January 2005) reiterated the government’s full comm itment to implementing trade and investment 
policies and measures that are consistent with its ri ghts and obligations as a Member of the WTO.  In 
the Replies above, Qatar has shown that it does not provide subsidies within the meaning of 
Article XVI:1 of the GATT 1994.  The incentives gr anted are not contingent  upon exportation or the 
use of domestic over imported goods, or as Article  3 of the Agreement states, "local content 
subsidies".  There incentives have neither design nor intent to distort trade or adversely affect the 
interests of other Members. 
 
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